KUALA LUMPUR, May 8: Malaysian palm oil futures ended higher on Wednesday due to a technical rebound and gains in Chicago Board of Trade soyaoil futures, traders said.

The benchmark third-month July futures closed 15 ringgit higher at 1,222 ringgit ($321.58) a ton after trading as low as 1,209. Volume was heavy at 1,995 lots.

The market remains supportive, said one analyst. But we have to see whether this rebound will sustain or whether the market will be making a U-turn. We will find out this week or next week, he said.

The downside in CBOT soyaoil futures was limited, but there was still room for the price to touch 15.88 US cents, said the analyst.

CBOT soyaoil settled up 0.22 to 0.30 cent per lb on Tuesday, with May up 0.27 cent at 16.25 cents and July up 0.29 cent at 16.43 cents.

Some deals were reported on the physical sector amid talk of improving demand by main buyers, such as India.

Traders in India, the world’s largest edible oil buyer, said imports will likely grow in the months ahead following a seasonal fall in local stocks.

India, with a population of more than a billion, imports nearly half of its oil requirements, buying palm oils from Malaysia and Indonesia and soy oil from Argentina, Brazil and the United States.

Indian traders said imports could rise to 450,000 tons in May and cross 500,000 tons in June, July and August mainly because local supplies will dry up and demand rises by about 10 per cent during the rainy season which begins in June.

The May contract for the southern and central regions saw bids at 1,220 ringgit a ton, against sale offers at 1,230.

Trade was reported at 1,220 ringgit for both sides.

LONDON: Palm oil firmed around $2.50 to $5 per ton as it followed the firmer stance of the Malaysian palm oil futures traders said.